Kimberly Crocker and Julian H. Crocker v. The Hilton International Barbados, Ltd.

Court of Appeals for the First Circuit
1992 WL 266774, 976 F.2d 797, 1992 U.S. App. LEXIS 25147 (1992)
ELI5:

Rule of Law:

To establish specific personal jurisdiction under Massachusetts long-arm statutes, the plaintiff's cause of action must arise directly from the defendant's in-state business transactions or a tortious injury occurring within the Commonwealth, and general business solicitation alone is insufficient. Furthermore, contract claims against a hotel for third-party criminal acts typically require intentional interference by the hotel and arise at the time of guest check-in, not reservation.


Facts:

  • Kimberly and Julian Crocker were guests at the Hilton International Barbados, Ltd. hotel in Bridgetown, Barbados.
  • While on the hotel premises, Kimberly Crocker was attacked at knifepoint and raped by a person who was neither a guest nor a hotel employee.
  • The Crockers, Massachusetts residents, booked their hotel room through Village Tour and Travel, a Massachusetts travel agency, which placed the booking via an affiliate that had a discount rate agreement with the Barbados Hilton.
  • Hilton International maintained an '800' number and a Boston area telephone number for worldwide reservations, listed in a brochure Kimberly Crocker obtained in Massachusetts.
  • The Barbados Hilton was featured in a Boston Globe advertisement sponsored by Hilton International and American Airlines.
  • The Barbados Hilton was represented on one occasion at an annual Caribbean Tourism Association trade show in Massachusetts.

Procedural Posture:

  • Kimberly and Julian Crocker (Appellants) sued Hilton International Barbados, Ltd. (Appellee) in a U.S. District Court in Massachusetts for negligence and loss of consortium.
  • Appellee moved to dismiss the complaint for lack of personal jurisdiction.
  • The District Court granted Appellee's motion to dismiss.
  • Appellants moved to amend their complaint to add Hilton Hotel Corporation and Hilton International, Ltd. as defendants and to add claims for breach of contract and warranty.
  • The District Court denied Appellants' motions to amend the complaint.
  • Appellants moved to stay the jurisdictional ruling pending discovery.
  • The District Court rejected Appellants' motion to stay.
  • Appellants appealed these rulings to the United States Court of Appeals for the First Circuit.

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Issue:

1. Does a foreign hotel's general solicitation of business in Massachusetts, or a Massachusetts resident experiencing the psychological and consortium effects of an out-of-state injury there, establish specific personal jurisdiction under Massachusetts long-arm statutes (Mass.Gen.Laws ch. 223A, § 3(a), § 3(d), or ch. 223, §§ 37 and 38) for a tort claim arising from a criminal assault at the out-of-state hotel? 2. Did the district court abuse its discretion in denying motions to amend the complaint to add breach of contract and warranty claims, and additional defendants, when these proposed claims would not establish personal jurisdiction in Massachusetts?


Opinions:

Majority - Torruella, Circuit Judge

No, a foreign hotel's general solicitation of business in Massachusetts, or a Massachusetts resident experiencing the psychological and consortium effects of an out-of-state injury there, does not establish specific personal jurisdiction under Massachusetts long-arm statutes for a tort claim arising from a criminal assault at the out-of-state hotel. No, the district court did not abuse its discretion in denying the motions to amend the complaint because the proposed new claims would not establish personal jurisdiction in Massachusetts. The court determined that specific personal jurisdiction under Mass.Gen.Laws ch. 223A, § 3(a) (transacting business) was lacking because the cause of action, a personal injury from an assault in Barbados, did not "arise from" the hotel's business transactions in Massachusetts. Citing binding precedent from Marino v. Hyatt Corp. and Fournier v. Best Western Treasure Island Resort, the court affirmed that mere solicitation of business in Massachusetts and the booking of a reservation there are insufficient when the actual injury occurred out-of-state and was unrelated to the in-state business activities. Regarding Mass.Gen.Laws ch. 223A, § 3(d) (tortious injury in this commonwealth), the court held that the injury referred to is the direct tortious act itself (the sexual assault), which occurred in Barbados, not the subsequent manifestations or effects (post-traumatic stress syndrome or loss of consortium) experienced by the Appellants upon their return to Massachusetts. This interpretation aligns with prior rulings where the locus of the bodily contact, not the lingering effects, dictates where the injury occurred for jurisdictional purposes. Furthermore, the court found no basis for jurisdiction under Mass.Gen.Laws ch. 223, §§ 37 and 38 (service on foreign corporations). While these sections apply to foreign corporations soliciting business in Massachusetts, the court reaffirmed that "more than 'mere solicitation'" is required, particularly when the cause of action does not arise out of the in-state activities. The hotel's activities did not substantially affect Massachusetts commerce nor did they directly cause the particular transaction (the assault) at issue. The court also affirmed the district court's denial of the motion to amend the complaint. Proposed breach of contract and warranty claims, the court reasoned, would also fail to establish personal jurisdiction. Relying on Marino, the court stated that a contract claim against a hotel for personal injury requires intentional interference with the hotel guest's right to quiet enjoyment, which was not alleged for a third-party criminal act. Moreover, the implied covenant pertaining to the safety of premises arises when a guest actually checks in and occupies a specific space, which would have occurred in Barbados, not at the time of reservation in Massachusetts. Therefore, the proposed amendments would be futile as jurisdiction would still be absent. Finally, the court concluded that the district court did not abuse its discretion in denying discovery on personal jurisdiction, as the information sought (e.g., revenue from Massachusetts customers, employee travel to trade shows) was relevant only to mere solicitation or out-of-state services, which were already deemed insufficient for jurisdiction.



Analysis:

This case provides a significant clarification of specific personal jurisdiction under Massachusetts long-arm statutes, particularly the stringent 'arising from' requirement for out-of-state torts. It firmly establishes that general business solicitation within the forum state, or the plaintiff's experience of an injury's effects within the forum state, is insufficient to confer jurisdiction if the underlying tortious act occurred elsewhere and did not directly result from the in-state contacts. The ruling also limits the scope of contract and warranty claims against hotels for third-party criminal acts, emphasizing that the duty of safety typically arises upon check-in rather than reservation. This makes it more challenging for plaintiffs to sue foreign entities in Massachusetts when the primary incident occurred outside the Commonwealth, unless a direct causal link between the defendant's in-state activities and the specific harm can be demonstrated.

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